Diavik Socio-Economic Monitoring Agreement

GNWT Implementation Report on its commitments under the

Diavik Socio-Economic Monitoring AgreementFor January to June 2013

Prepared by the Government of the Northwest Territories.

GNWT Implementation Report on its Commitments

under the Diavik Socio-Economic Monitoring Agreement

For January - June 2013

July 2013

Prepared by the Departments of:

Industry, Tourism and Investment Education, Culture and Employment

TABLE OF CONTENTS

PREAMBLE ...................................................................................................................... 1 TRAINING AND CAREER CHOICES Training Efforts Relevant to the Project ............................................................................. 2 Program Summary ............................................................................................................ 9 Other GNWT Training Responsibilities .............................................................................. 11 BUSINESS DEVELOPMENT GNWT Responsibilities – Business Development ............................................................. 19 Other GNWT Business Development Responsibilities ...................................................... 25

GNWT IMPLEMENTATION REPORT ON ITS COMMITMENTS UNDER THE DIAVIK SOCIO-ECONOMIC MONITORING AGREEMENT

January - June 2013 Page 1 of 29

PREAMBLE When the Diavik Diamonds Project went through an environmental assessment, the Responsible Authorities (RAs) recommended that follow-up monitoring and implementation of mitigation measures be included in a socio-economic agreement between the Government of the Northwest Territories (GNWT), other governments, and Diavik Diamond Mines Inc. (Diavik).1 The RAs stated that the socio-economic agreement “will provide a formal mechanism to ensure the mitigative measures outlined in Diavik’s submissions (including its commitments document) and in the RAs conclusions of the comprehensive study report are appropriately implemented and monitored.”2 In 1999, the GNWT signed a Socio-economic Monitoring Agreement (SEMA) with Diavik related to the development of its diamond mine located in the Lac de Gras region of the Northwest Territories. Under the SEMA, the GNWT is responsible for reporting on the status of its commitments two times each year. The commitments that the GNWT is responsible for include helping develop businesses in the NWT and offering programs and services related to training and education. These commitments help ensure that Northwest Territories (NWT) businesses and residents may benefit from the Diavik Diamonds Project. This report summarizes how the GNWT is implementing its portion of the SEMA. The first section relates to Training and Career choices and the second section relates to Business Development. Throughout the document, the GNWT commitments under the SEMA are shown in blue boxes (with the relevant section number in brackets). For example:

Offer Pre-Employment Training Programs. (Appendix B - 5a)

1 Comprehensive Study Report. Diavik Diamonds Project. June 1999, p.227. 2 Ibid., p.237.

Summary of SEMA commitment

SEMA section where the commitment is

found



TRAINING AND CAREER CHOICES Training Efforts Relevant to the Project Listed below are programs through which the GNWT carries out its training and career choice commitments under the SEMA. This report is based on active programs and contracts from January 1 to June 30, 2013. The report aligns each commitment with relevant programs. For Tables 1 through 6, training programs are classified as follows3:

Job-Specific: This includes training, education, and support programs directed at a specialized field of study and on-the-job or off-the-job training for a specific occupation. Examples are Apprenticeship–on-the-Job, Graduate Transition Program, and the Youth Employment Program.

Prior to Employment: This includes training supports and programs designed to

occur before a person’s involvement in the workforce, or in specialized training. Examples include Student Financial Assistance (SFA) or Community Skills for Work.

Literacy: This includes programs aimed at improving youth and adult

education levels and access to specific education and training programs. Some examples of these programs are the Community Literacy Development Fund (CLDF) or Workplace Education Program3.

At times, programs can fit into more than one group or are better represented by a group not listed. Programs last different lengths of time. One person may benefit from more than one program within a reporting period. Therefore, numbers may not be directly comparable within a classified category. GNWT programs and services highlighted in the tables are offered for all NWT communities. Not all programs were accessed during the reporting period, and some data may not have been available for this report.

3Diavik Socio-Economic Monitoring Agreement, Section 3.4.4



Table 1: Yellowknife/ Detah/ N’dilo

Training by Type and Ethnicity Participation

Rate by Priority Group (%)

Program

Job- Specific Pre-Employment Literacy

Total

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Offer Pre-Employment Training Programs. (Appendix B – 5a)

Community Literacy Development Funds** - Detah/N’dilo

1 - - - - - 0 0 0 1 0 0 100

Provide Allowances and Support Services through the Apprenticeship Training Assistance Program. (Appendix B – 5c)

Apprenticeship Training on the Job 8 41 8 - - - - - - 57 14 72 14

Provide Training Subsidies through the Training-on-the-Job Program. (Appendix B – 5e)

Training on the Job/LMA-WE 2 5 0 - - - - - - 7 29 71 0

Provide Access to Education and Training Allowances. (Appendix B – 5d)

Student Financial Assistance (Winter/Spring 2013 - - - 78 127 - - - 205 38 62

Building Essential Skill/LMA-SD 1 66 11 40 23 - - - 141 29 63 8

Self- Employment Option 2 13 - - - - - - 15 13 87

Small Community Employment Support 0 0 0

Notes: “-“ means data not applicable. ** Program Numbers Represent the total number of contracts, not participants.



Table 2: Behchokǫ̀



Program


Total

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d


Community Literacy Development Funds** Includes Whati, Gameti, and Wekweeti

1 - - - - - 0 0 0 1 0 0 0






Student Financial Assistance (winter/spring 2013) - - - 32 1 0 - - - 33 97 3 0

Building Essential Skills/LMA-SD 6 0 0 - - - - - - 6 100 0 0

Self- Employment Option 0 0 0 - - - - - - 0 0 0 0




Table 3: Whatì



Program


Total

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d


Community Literacy Development Funds** Through Behchokǫ̀

- - - - - - 0 0 0 0 0 0 0








Self-Employment Option 0 0 0 - - - - - - 0 0 0 0

Small Community Employment Supports 6 0 0 - - - - - - 6 100 0 0




Table 4: Gamètì



Program


Total

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d


Community Literacy Development Funds** Through Behchokǫ̀

- - - - - - 0 0 1 1 0 0 100













Table 5: Wekweètì



Program


Total

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d


Community Literacy Development Funds** through Behchokǫ̀

- - - - - - 0 0 0 0 0 0 0






Student Financial Assistance (winter/spring 2013 - - - 0 0 0 - - - 0 0 0 0


Self- Employment Option 0 0 0 - - - - - - 0 0 0 0





Table 6: Łutselk’e



Program


Total

Abo

rigin

al

Non

-Abo

rigin

al

Not

Dec

lare

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d

Abo

rigin

al

Non

-Abo

rigin

al

Not

Rep

orte

d


Community Literacy Development Funds** - - - - - - 0 0 0 0 0 0 0






Student Financial Assistance (winter/spring 2013

- - - 2 1 0 - - - 3 66 434 0







Program Summary Apprenticeship Training-on-the-Job Apprenticeship Training-on-the-Job (ATOJ) is a wage subsidy program designed to offset employer costs incurred while training apprentices in a designated trade. The principal goal of the program is to develop a skilled northern workforce through supported training. ATOJ assists small and medium size northern businesses with training and employing apprentices and certified journeypersons in trades designated under the NWT Apprenticeship, Trade and Occupation Certification Act. ATOJ aims to increase the participation rate of northern residents in designated trades in the NWT. Building Essential Skills The Building Essential Skills program is a short-term support program. The program helps eligible people get the training or education needed to get work or certification. To be eligible for the Building Essential Skills program, applicants must either be currently receiving Employment Insurance (EI) benefits, or have an EI claim which ended within the past three to five years. Community Literacy Development Fund The CLDF provides financial assistance to community organizations to develop and deliver local programs that will increase literacy skills and raise awareness of the importance of literacy. The CLDF promotes literacy in classes, in the workplace, in the community, on the land and at home. Funding may be given to projects such as tutoring, community learning groups, job search skills, public awareness, health, development of learning materials, and basic technology literacy. Intergenerational family literacy programs, which include adult and community literacy awareness programs, will also be funded. The CLDF supports literacy development in all 11 NWT official languages, with an emphasis on Aboriginal languages as identified in the NWT Literacy Strategy. Self-Employment Option The Self-Employment Option (SEO) program helps people without jobs who have chosen to start their own business. It assists them to develop their business and financial plans. It also provides support to clients in applying their business plans. To be eligible for the SEO program, applicants must either be currently receiving EI, or have an EI claim which ended within the past three to five years.



Student Financial Assistance The SFA program provides assistance to eligible NWT residents to help them with their postsecondary education‐related expenses. Full-time students can apply for Basic Grant, Supplementary Grant, Remissible Loan, Repayable Loan and/or the Study Grant for Students with Permanent Disabilities. The types of assistance available are based on student categories. Students who are attending on a part-time basis can apply for course reimbursement. Training on-the-Job The goal of the Training-on-the-Job (TOJ) program is to help Northerners to gain work skills needed for meaningful and steady jobs. Wage supports are given to companies to lower the costs of training. To be eligible for the TOJ program, applicants must either be currently receiving EI benefits, or have an EI claim which ended within the past three to five years. Labour Market Agreement The Canada-NWT Labour Market Agreement (LMA) enables the NWT to deliver labour market programs to enhance participation of non EI eligible individuals by assisting them to prepare for entry to, or return to, employment or to otherwise obtain or keep employment or maintain skills for employment.

LMA Self Employment Option LMA Self Employment Option provides supports to individuals who would like to start a small business. The benefits provided under this program include financial support and support to develop the required business skills to aid in success. LMA Skills Development The LMA Skills Development program category assists program participants to obtain the training or education needed to get work or certification.

LMA Work Experience LMA Work Experience provides clients with the ability to gain valuable work skills on the job, and to be able to build this experience into their resumes. Work experience can be part of an overall work readiness program or can be a stand-alone event.

Small Community Employment Supports The Small Communities Employment Support program provides employers with a wage subsidy for individuals, job or project based, 15 years of age and older, in small and remote communities to gain work experience and to acquire the essential employability skills that promote self-confidence and self-reliance. It also provides support for third party agencies and partnerships to deliver project based training and work experience that may lead to longer term employment and develops workplace essential skills.



Other GNWT Training Responsibilities

Work in co-operation with Diavik in encouraging careers in technology, science, and engineering. (Appendix B – 4g)

The GNWT is committed to collaborating with industry to encourage careers in a broad range of occupations including technology, science, and engineering. In addition to programs described under other commitments, collaborative efforts made by the GNWT are highlighted below. Career Opportunities Series The Career Opportunities Series is a group of booklets about jobs in the NWT. The Department of Education, Culture and Employment (ECE) produced these booklets with companies and groups that work in each sector. Each booklet contains information on the labour market, potential jobs, work conditions, training, financial support, and career planning in the NWT. Booklets that include information on the mining industry or other careers that can be used in mining are listed here:

o Jobs in Information & Communication Technology

o Jobs in Community Government

o Jobs in Mining o Jobs in Oil & Gas o Jobs in Construction o Jobs in the Service Sector o Jobs in Health o Jobs in Social Services

o Jobs in Aviation o Jobs in Tourism o Jobs in Arts & Culture

NWT Job Futures This online tool provides career, employment and education requirements for 140 occupations. Information includes what employees do, how much they earn, educational background and future prospects. Average employment income, occupational demand and labour market statistics are also available to help for a career move or decide on a particular path. NWT Job Futures can be found online at http://jobfutures.statsnwt.ca/.

http://jobfutures.statsnwt.ca/



Include mining industry careers in career counselling services. (Appendix B – 5f) Organize and support regional career fairs. (Appendix B – 5h)

During the reporting period the GNWT provided career counselling services and support to career fairs, with mining content, under the following program areas: ECE Service Centres ECE Service Centres, in addition to the delivery of ECE programs, offer career counselling, career workshops, tutoring, career resource libraries, and the organization of career fairs and conferences. Support is also given to NWT schools to increase people’s understanding of programs and services while Career Development Officers give ongoing support to NWT communities. Tables 7, 8 and 10 provide examples of career development work done through the ECE Service Centres. Employment Assistance Services Employment Assistance Services (EAS) allow community groups to provide career and employment assistance for a direct local need. Needs may be due to sudden shifts in the labour market or groups requiring additional support that is not usually available. EAS activities help people make informed career choices to prepare them for work and to find and keep work. Career Counselling Resources Career counselling resources related to the mining industry are accessible in ECE Service Centres, schools, libraries, Aurora College campuses, Community Learning Centres, and online. These include: Videos: Posters: - Path of the Rotational Worker - The Labour Market of the NWT - Path to Post-Secondary Education - Jobs in the Mining Industry - Path of the Volunteer - Role Model Campaign - Mine Your Business - Rock Solid Publications: 2011-12 NWT Labour Market Review – 2013 NWT Labour Force Development Framework – 2011 NWT Education, Training and Employment Guide – 2011



Table 7: Career Counselling Support, Events and Activities

Car

eer C

ouns

ellin

g Su

ppor

t

Event Description Community Participation

Job Search Skills/Interview skills, Apprenticeship Sessions

3 workshops held for the Youth/community members. Wekweti 9

ECE Programs and Services

Programs and services information sessions provided to students at St. Pat’s Grads & Parents night and the Career Transition Seminars, and Youth Conference .

Yellowknife 250+

Career Fair Annual career fair for general public. Detah 300+

Job search/career planning, resume writing, apprenticeship, SFA

10 workshops delivered to high school students and general public. Gameti 56

Budgeting/Interview Skills/Resume writing, budgeting on low income, job search, CDO/CSO referrals

14 workshops held at the Corrections, North Slave Correctional Centre, NGOs, career centre. Yellowknife 80

North Slave awards of excellence - apprenticeship

Annual apprenticeship awards ceremony. Yellowknife 75+

Job search/internet job search/ Two workshops held for general public. Whati 10

Personality Dimensions/True Colors Workshops

Personalities Dimensions Workshops are planned to help people find their own characters, likes, dislikes, skills, strengths and weak points. Provided to Aurora College Students.

Yellowknife Whati Gameti

7 10 39

Community Visit

Visits made by the North Slave ECE Service Centre to provide community groups, schools, and companies with information on programs and services.

Behchokǫ̀; Detah, Whati, N’dilo, Lutselk’e, Gameti, Wekweeti

50+

Career Week / Skills Canada – Power Up Skills Canada NWT competitions. Yellowknife 200+

Note: Information reported here is only for the communities noted under the SEMA. There are other events in the NWT that are not listed.



Table 8: Career Events January to June 2013

Car

eer F

airs

& C

onfe

renc

es

Event Description Community Participation

NWT-North Regional Skills Competition & Career Fair (Feb. 2013)

This Olympic-style competition has youth competing against each other in their chosen trade and technology areas. There are about 10 contest areas available and competitors are students from the Beaufort Delta & Sahtu.

Hosted in Inuvik, open to all Beaufort Delta & Sahtu communities

40 competitors

Community-Based Workshops (Feb.-Mar. 2013)

In lieu of the NWT-South Regional Skills Competition for 2013, community-based workshops were offered to interested schools. In Feb-March 2013 these included a hairstyling workshop in Whati and an Aesthetics workshop in Fort Resolution.

Whati, Fort Resolution

5 (Fort Resolution), 10 (Whati)

Territorial Skills Competition & Career Expo (Apr. 2013)

This Olympic-style competition has youth competing against each other in their chosen trade and technology areas. There are about 15 contest areas available and competitors include both secondary and post-secondary students/apprentices.

The Career Expo is sponsored by ECE.

Hosted in Yellowknife, open to all NWT communities

65 competitors

Skills Canada National Competition (June 2013)

This national competition involves the best youth from each province and territory competing in 40 contest areas. Competitors generally qualify through provincial & territorial competitions. Competitors are both secondary and post-secondary students/apprentices.

Hosted in Vancouver 16 competitors

from NWT

Skills Clubs (Ongoing) Volunteer mentors coach high school youth in various trades and technology related skills, such as cooking, carpentry, welding, and more.

NWT Communities incl. Aklavik, Colville Lake, Fort Good Hope, Fort McPherson, Fort Providence, Fort Resolution, Fort Simpson, Fort Smith, Gameti, Hay River, Inuvik, Paulatuk, Tuktoyaktok, Tulita, Ulukhaktok, Whati, Yellowknife

Varies (usually 4-12 per club)

Presentations to Schools/Youth

Presentations include information about careers in trades, chances to win prizes, and hands-on activities where practical.

NWT Communities Varies (usually 6-20 youth per presentation)

* Data recorded is an estimate of participants.



Work with industry, Aboriginal Organizations, Aurora College and the Mine Training Committee to co-ordinate the delivery of training programs.

(Appendix B – 5g)

During the reporting period, the GNWT worked with organizations to co-ordinate the delivery of training programs listed below, in addition to the initiatives mentioned in this report. Aurora College Aurora College delivers postsecondary schooling in trades, professional, certificate, diploma, and degree programs. Along with its current programs, Aurora College also works with businesses and Aboriginal groups to meet sector, regional and community training and education needs. In addition to education and training programs, Aurora College provides support services to improve each student’s chances for success. These services include counselling, housing, libraries, sports, student success centres and other services. Other career support is provided through adult educators in Detah / N’dilo, Łutselk’e and each of the four Tlîchô communities. Adult educators provide adult literacy and basic education, as well as other training programs on an as-needed basis. Mine Training Society The Mine Training Society (MTS) is a group focused on developing a strong labour supply for the mining industry. The society includes members from mining companies, Aboriginal authorities and government. Specific job openings are identified before setting up training programs. This provides successful participants with a greater chance of gaining employment. In addition, members of the society also develop learning materials, and support systems. The GNWT provides annual funding and in-kind support. Through Aurora College, the GNWT contributed to the following programs/projects4 offered by the MTS: Table 9: Mine Training Society

Program/Project Name Organization/ Community Participants

Introduction to Underground Mining Aurora College/Behchokǫ̀ 11

Introduction to Underground Mining Aurora College/Lutselk’e 6

Heavy Equipment Operator Aurora College/Fort Smith 2

Note: Information reported here is only for the communities noted under the SEMA. There are other Programs/Projects in the NWT not listed.

4 Numbers are for participants in each program to date. Source: Mine Training Society.



Underground Mine Training Simulators Aurora College, the GNWT, Aboriginal and Northern Affairs Canada, BHP Billiton, Diavik Diamond Mines and DeBeers partnered to purchase four underground mining training simulators in 2008. There is one stationary simulator located in Yellowknife and three portable models that can be brought into communities and that can also be used in career fairs and other events to create exposure, awareness and stimulate interest in underground mining jobs.

Computerized programs provides a realistic, hands-on learning experience and leads the participant through a series of job-related manoeuvres, using modern tools and equipment similar to those that the operator would perform on the job, in a safe and controlled environment.

Skills Canada NWT Skills Canada NWT is a group that works with youth, employers, teachers, labour groups and government to promote careers in skilled trades and technology for Northern youth. Funding support is provided by companies and the federal and territorial governments. Through skills clubs, students get lessons from trades and technology experts who donate their time to share their skills with youth. Programs and events promote trades and technologies. Skills clubs include weekly two-hour lessons during an eight to 24 week period. Ready to Work North Ready to Work North (R2WN) is a job-readiness program created to prepare entry-level NWT workers for jobs. The curriculum materials include a participant workbook, answer key and a trainer’s guide. Lessons were developed using transferable skill standards. These standards were adapted for use in the NWT. Lessons include activities that are related to trades industries, government and the service sector in the NWT. Introduction to Mining The community-based Introduction to Mining course is six weeks long, including two weeks of R2WN. Underground Miner Training Program The Mine Training Society sponsored and Aurora College delivered Underground Miner Training Program is 12 weeks in length and includes an introduction to geology, basic mining principles as well as a site visit to expose students to the physical realities of underground mining. Students will receive an Aurora College record of achievement upon completion.



Support Apprenticeship Development. (Appendix B – 2)

These are programs that support apprenticeship development, in addition to initiatives noted elsewhere. Apprenticeship and Occupational Certification (AOC) The ECE invests over $3 million annually to support apprenticeship and occupational training and certification. This supports the Apprenticeship, Trade and Occupations Certification Board and trade advisory boards; program development; shop accreditation; technical training programs; examinations and certifications; and wage subsidies to eligible employers to hire and train apprentices. Base funding is also provided to Aurora College to deliver trades programming. The Department funds Aurora College to deliver apprenticeship technical training at Thebacha Campus in trades that that have highest number of registered apprentices. This currently includes: carpenter, plumber, heavy duty equipment technician, electrician and housing maintainer. Aurora College also delivers a number of pre-trades and other industrial training programs such as mineral processing, camp cook, heavy equipment operator and underground mining. Table 10: Mining Student Supports Event Description Community Participation

Trade entrance examinations

Conducted twice per month at Canada NWT Service Centre.

Yellowknife, North Slave and other NWT communities

2013 North Slave - 50 Beaufort Delta - 12 Dehcho - 4 Sahtu – 1 South Slave – 10 Total = 77

Career Development Officers Support

Career Development Officers met with employers and apprentices, conducted site visits, administered trade entrance exams, and completed training evaluations.

North Slave and other NWT communities 237+

Note: Information reported here are only for the communities noted under the SEMA. There are other events in the NWT not listed. Schools North Apprenticeship Program (SNAP) SNAP is a program that allows students to register as apprentices and stay in school while gaining trades experience and earn school credits. This program is based on a partnership between industry, ECE, and high schools.



BUSINESS DEVELOPMENT GNWT Responsibilities – Business Development The programs through which the GNWT carries out the business obligations it has under the SEA are described in the following section. For GNWT grants, contributions and loans, the following meanings apply:

Grant: This is an unconditional transfer payment. Contribution: This is a conditional transfer of approved funds to a third

party to fulfill a statutory obligation or other government objective.

Loan: This is a business agreement requiring the transfer of funds

from the lender to the borrower, for a specific purpose that will be repaid by the borrower with interest over an agreed-upon period of time.

All programs listed are offered in all NWT communities. Each program area has its own program requirements.



Provide and actively communicate a general program of business grants, contributions, and loans to maximize NWT business capacities and employment

opportunities. (Appendix C – 11a)

The Department of Industry, Tourism and Investment (ITI) regional offices, the NWT Business Development and Investment Corporation (BDIC) and other parties responsible for program implementation regularly provide information about general programs. These general programs include the programs under the Support for Entrepreneurs and Economic Development (SEED) Policy and the BDIC Credit Facilities, Venture Investment, Contributions and Subsidiary programs. Support for Entrepreneurs and Economic Development Policy SEED provides programs to help diversify the economy, start or expand NWT businesses, improve business knowledge and capacity, and to investigate new sector business opportunities. In the 2011/2012 fiscal year, $3,991,000 was available in program funding.5 However, due to demand, ITI gave a total of $4,019,760 in contributions to 447 individuals, businesses and organizations in the NWT. 6 SEED has five categories: Sector Support Assistance up to $25,000 is available for sector research or investigation of new opportunities. The program also provides an interest rebate for up to $15,000 annually for eligible businesses to offset loan interest related to new capital purchases for expansion of business. Energy, e-commerce, tourism and value-added manufacturing are designated as priority sectors. Community Economic Development Up to $25,000 is provided in this category for community-based business research. It can also be used to support activities, such as art festivals or community economic promotions. Micro Business In this category, contributions of up to $5,000 are provided for self-employment activities aimed at traditional economy, arts, film and similar self-employment activities.

5 GNWT, “2011/2012 Grants and Contributions Results Report” (October 29, 2012) p.13. 6 Ibid.



Business Intelligence and Networking For this category, up to $3,000 per individual may be provided where business trip costs exceed $1,500 (each applicant must contribute at least $1,000 towards eligible trip costs). Business Support Applicants In this category, up to $15,000 is available to eligible applicants for start-up funding, asset acquisition, operational support and market and product development.

Assist NWT businesses to acquire loans, credit facilities, grants or develop capital where it will increase NWT employment. (Appendix C – 11b)

Business Development and Investment Corporation The BDIC works with regional business corporations and other partners to offer services and information to support the business goals of the GNWT in a way that helps the people and the economy of the NWT. The BDIC provides several services to NWT businesses. They include:

• Offering loans, working capital guarantees and standby letters of credit. • Giving contributions to new and expanding NWT businesses. • Investing in companies. • Operating subsidiary companies. • Providing business information and guidance.

For instance, the BDIC Winter/Summer Re-Supply Financing offers short-term loans to clients, as it is the most cost-effective way to re-supply their inventory with one year to re-pay the loan. Variable Interest Rate Financing allows for a flexible loan with the advantage of a lower borrowing rate during times of falling interest rates. The BDIC Capital Guarantee Program guarantees a business working capital arrangement with its bank. BDIC approved $525,070 of credit and provided $96,269 in grants within the reporting period. Partnerships The BDIC has entered into Memoranda of Understanding (MOU) with the NWT Chamber of Commerce, Aurora College and the Sahtu Business Development Center. The MOU with the NWT Chamber of Commerce allows both organizations to work together to better serve the needs of the territorial business community. The intent is to cooperate and share costs in carrying out activities and promote business attraction, development and retention.



The BDIC and Aurora College cooperate in the delivery of courses in different programs at Aurora College campuses. Aurora College makes available professional development courses and workshops for BDIC staff and the BDIC supports Aurora College’s focus on the improvement of business based knowledge and skills through specialized instruction services for business and economic development programs students. The Sahtu Business Development Centre provides joint client transactions in order to improve the financing options given to clients.

Maintain a registry of businesses eligible under BIP and provide DDMI with access to that data. (Appendix C – 11c)

GNWT Business Incentive Policy (BIP) To support the GNWT commitment to the advancement of a vibrant private sector and sustainable economic development in the NWT, the GNWT has had a preferential procurement policy since 1976. The BIP is an economic policy that gives preference to registered NWT businesses for the GNWT’s purchases of all products and services. The GNWT’s official registry of approved businesses under the BIP can be found at: http://www.iti.gov.nt.ca/iea/bip/index.htm. The NWT Manufactured Products Policy (NWTMPP) requires GNWT contract authorities to purchase Approved NWT Manufactured products as designated under the NWTMPP. The NWTMPP strives to encourage local production as a means to diversify the NWT economy; and foster and maintain the investment, jobs and income produced by local manufacturing. Below is a breakdown of the BIP-registered businesses by community grouping, for the 2011/2012 fiscal year: Table 12: Northern Businesses Registered Under BIP

Behchokǫ̀ Gamètì Łutselk’e Wekweètì Whatì Yellowknife / Detah / N’dilo Catchment* Other NWT

Communities NWT Total

20

0

3

0

1

669

515

167

1,375

* Includes Additional Communities Identified in the Diavik Socio-Economic Monitoring Agreement, Appendix A - 10 & 11, as potential pickup points (Hay River, Inuvik, Fort Simpson, Norman Wells, and Fort Smith).

http://www.iti.gov.nt.ca/iea/bip/index.htm



GNWT Contract Registry Reporting System In order to ensure that any interested businesses are given a fair opportunity to compete on government contracts, the GNWT provides information on government contract opportunities. The GNWT Contract Registry and Reporting System provides a central list of all tenders and proposals. It is open to the public and supports the BIP by enhancing transparency in government contracting.



Other GNWT Business Development Responsibilities Apart from the SEED Policy and the BDIC Credit Facilities, Venture Investment, Contributions and Subsidiary programs, ITI Regional Offices are also responsible for facilitating other services and programs to maximize NWT business and employment capacity. These areas of focus are the subject of the following sections.

Assist NWT businesses to take advantage of contracting opportunities. (Appendix C – 11d)

Facilitate NWT businesses to design, prepare and develop financial proposals. (Appendix C – 11i)

Provide counselling services to help NWT businesses through the business development process. (Appendix C – 11j)

The Community Transfer Initiative provides NWT communities with salary and operations funding so that they can obtain the services of an Economic Development Officer (EDO) who will be responsible for that community. EDOs are responsible for facilitating, promoting and ensuring community economic development in order to secure opportunities for economic and business development and increase local employment. Economic Development Officers EDOs help people and companies through business counselling and program delivery. They are networked to business development contacts, financial institutions, and government departments and agencies. This enables them to develop ongoing contacts within the mining industry, and in industries that seek to do business with the mining industry. In this manner locals are informed about potential opportunities in the mining industry. During the reporting period, EDOs provided business counselling to enable clients to pursue or maintain business with Diavik in particular, or with the mining industry in general. The kinds of businesses that benefit from these services are those that could provide contract services to Diavik, such as those involved in construction and transport services. The type of advice or counselling given can range from reviewing and providing advice on business practices, to providing suggestions and strategies on how to approach the mines to gain contracts. Examples of such service include assistance in preparing year-end financial statements and exploring ways of expanding a business. EDOs are an information source on market data and on the development of opportunities in a wide range of economic sectors. This assistance helps small businesses build capacity.



Community Futures Program The Community Futures Program (CFP) is a community-based regional approach to employment creation and economic development. Seven organizations represented by the Community Futures Association deliver CFPs across the NWT. All 33 NWT communities have access to CFP. The CFP funds several CFDCs in the NWT. CFDCs are non-profit groups that support small business development. Since their creation, CFDCs have been provided $6.23 million in non-repayable capital funding - the GNWT contributed $3.73 million of that total.7 Each CFDC is an incorporated, non-profit body run by an independent board of directors. The CFDC’s board of directors is made up of people from the regions it serves. In the 2011/12 fiscal year over $1.13 million in funding was given out under the CFP to the CFDCs.8 The mandate of each CFDC is community and business development through the creation and expansion of small and medium sized enterprises and the creation and maintenance of employment opportunities in NWT communities. CFDCs provide business information and skills development, as well as delivery of financial programs. CFDCs offer help to companies through programs that may include loans, business planning, lines and letters of credit, information and training. The CFDCs in the main communities that service the Diavik mine are the Thebacha Business Development Centre, the Akaitcho Business Development Corporation, and the Dogrib Area Community Futures. These corporations provide services to Fort Smith, Łutselk’e, Fort Resolution, Yellowknife, N’dilo, Detah, Behchokǫ̀, Whatì, Gamètì and Wekweètì. While each CFDC has some flexibility to set its own priorities for economic development in its respective region, they offer core services that include some or all of the following:

• Business loans and loan guarantees including term loans as large as $200,000. • Counselling and assistance for entrepreneurs beginning or expanding a

business. • Wage subsidies for those who are unemployed and want to start a new business. • Access to Canada Business NWT Internet sites and business information.

7 ITI, “Communities Futures Program 2010/11 Annual Report” (p.1). 8 GNWT, “2011/2012 Grants and Contributions Results Report” (October 29, 2012) p.12.



Work with NWT communities to create long-term businesses and employment opportunities and to increase business capacity. (Appendix C – 11f)

EDOs provide business counselling in the regions, to foster the long-term development of business capacity and to match local companies with business opportunities. The development of business and skill capacity can help a client to secure contracts in the mining industry, which helps to improve employment opportunities. The North Slave Regional Partnership is a collaborative partnership where representatives of Aboriginal, territorial, federal and municipal governments collaborate with the mining industry to discuss and develop strategies. This includes many programs that relate to the mining industry, including safety courses, apprenticeship programs, and more. Economic Development Officer (EDO) Transfer Agreements EDO Transfer Agreements are made with NWT communities to allow them to hire community economic development staff. The goal is a network of community Economic Development Officers working toward promoting business development in the NWT. These regional EDOs assist in new business development and expansion they also provide counselling in business network development, funding and access to market data. Transfer agreements are in place in Gamètì, Wekweètì, and Whatì. Currently, one full-time position is based in Whati and Gameti and one part-time position is based in Wekweeti. ITI’s North Slave Regional Office also has an arrangement with Denesoline to provide staff in the community of Łutselk’e for business development.

Help identify opportunities for joint ventures with NWT businesses. (Appendix C – 11h)

EDOs give business counseling that enables clients to pursue or maintain businesses with the mining industry. They provide ongoing advisory service towards potential joint ventures related to resource development.



Actively support the business development process, enabling the provision of technical business development support services through existing public and

private sector programs. (Appendix C – 11e)

The GNWT supports existing public and private sector programs that enable the provision of technical business development support services through:

• EDOs and EDO Transfer Agreements • Community Futures Plan • Support for Entrepreneurs and Economic Development funding • Business Development and Investment Corporation 9

Canada Business NWT In addition to these NWT programs, Canada Business NWT (CBNWT) gives information on government services, programs and rules. Questions are answered about starting a new company and how to improve current business; and online publications are provided on services in the North, and how to start a business in the NWT. The site is located with the BDIC and co-funded by the Canadian Northern Economic Development Agency. It acts as a central resource for Canadian and territorial business information. The goal is to give small companies and new business people access to true, timely and relevant information and referrals. The main CBNWT service centre is in Yellowknife. Each of the seven CFDCs is a CBNWT Service Centre access point. The CFDCs work to coordinate CFD service delivery with public and private agencies responsible for furthering economic development in the community and the region. This coordination reduces unnecessary duplication and uses resources more efficiently. BizPal BizPal provides entrepreneurs and prospective business owners in the NWT an easy and convenient way to access critical information needed to establish and run a business. It is an online service that streamlines the processes of business permitting and licensing. The service provides prospective business owners and entrepreneurs with access to permit and licence information across Canada. Information seekers answer a short series of questions about their current or proposed business and a customized list is created of the permits and licences needed from all levels of government, such as a development permit, development demolition permit, a business licence, lease or a purchase of crown land, an outfitters licence or a sign permit.

9 The Business Development section in this report also includes program descriptions of these programs under other commitments.



The service is the result of collaboration between federal, provincial/territorial, regional and local participating governments. The GNWT through ITI works with Industry Canada, municipal and Aboriginal governments, as well as territorial and regional business organizations, to maintain the BizPal network in the NWT. BizPal can be found online at http://www.iti.gov.nt.ca/businesseconomicdevelopment/bizpal.shtml.

Support northern business community meetings or conferences related to promoting business opportunities in the Project. (Appendix C – 11k)

Regional EDOs often work to facilitate economic development in the regions through participating in business community meetings, such as Chamber of Commerce meetings and Conferences. At these meetings, they promote and raise awareness about business opportunities relating to the mining industry. EDOs attend conferences, workshops and community meetings throughout their regions, the NWT and Canada to promote opportunities in their regions and support community meetings and conferences.

Facilitate the upgrading of management and entrepreneurial skills of NWT residents. (Appendix C – 11g)

Aurora College Aurora College offers certificates, diplomas, degrees and trades training with strong cultural content and hands-on experience to ensure programs meet the needs of NWT residents and the labour market. The college upgrades the business and economic skills of NWT residents through the programs described below.

Continuing Education – Business Development Aurora College’s three Continuing Education Departments offer employment-related skill development training courses. For business development, Aurora College offers the following courses:

• Business Basics • Proposal Writing • Bookkeeping • Financial Planning • Accounting and Finance • Project Management • Simply Accounting • Office Procedures • QuickBooks • Small Business Development

http://www.iti.gov.nt.ca/businesseconomicdevelopment/bizpal.shtml



Small Business Development The Small Business Development Program is a 16-week program intended for individuals who want to start a small business in the NWT. The Program focuses on areas important for the successful start-up and operation of a small business. Focus is placed on gaining familiarity with the structure of small businesses, learning how to develop a business plan, knowledge of sales and marketing, financial management, human resource management, strategic planning, business management and leadership. The Program is oriented to the practical development of a small business. It includes a special project to give students the opportunity for hands-on experience in starting and running a small business. Individuals taking the course also have the chance to work on their own business idea in this Program. Business Administration The Business Administration Program provides students with the knowledge and skills necessary to start in entry level careers in business, government and non-profit organizations. Business courses stress applicability to small businesses in the NWT. The Business Administration Program provides students with an opportunity to acquire either a certificate (one-year program) or a diploma (two-year program). The two-year diploma has three directions of study: general, Co-op, and Community Economic Development (CED). The Co-op direction has two work placement opportunities. The CED stream includes special courses that are useful for individuals who are planning to start a business at the community level, or looking for economic development positions with municipalities or Aboriginal organizations. To prepare for entering the Business Administration Program, a special Business Administration Access Program has been designed. The Program is made up of five courses from different disciplines. The objective of the Program is to provide students with required knowledge and skills and advanced education in communication, math, computer applications and bookkeeping.



Identify economic development programs and match new entrepreneurs and existing business capabilities with new opportunities to maximize Northern

business participation. (Appendix C – 9b)

Regional EDOs are experienced and informed in the variety of ways in which to help people and companies grow. As business development specialists they identify economic development programs, and provide support, advice and assistance. They are networked to business and other organizations, and agencies, which enables them to help new entrepreneurs and other businesses to identify opportunities and establish contacts within the mining industry, and in industries that seek to do business with the mining industry. EDOs apply their knowledge of the needs of industry in the regions where there is capacity for expanding or initiating local businesses.

Inform NWT businesses of opportunities arising from the business opportunities forecast. (Appendix C – 11d)

The GNWT relies on the Diavik Business Opportunities Forecast to fulfill this task. The GNWT informs NWT businesses of opportunities arising from the Diavik project through trade shows, communication materials and EDOs. During the reporting period, the following GNWT communication materials relating to business opportunities were available:

• The Business and Economic Development section of the ITI website. The website provides links to information on the BDIC, BIP, CFP, EDOs, Invest NWT, SEED and more.

• The publications section of the ITI website. This section has information on business and economic development resources, as well as information on diamonds, and is accessible. The section includes profiles on a number of industries, including construction, manufacturing, mining, retail and wholesale trade and transportation and warehousing. There are also a number of reports that may help identify business development opportunities. Copies of these publications have also been made available in print.

• The NWT Economic Trends Newsletter. This is published and distributed quarterly through the regions.

For further Information Contact:

Industrial Initiatives, Industry, Tourism and InvestmentScotia Centre, 8th FloorP.O. Box 1320Yellowknife, NT X1A 2L9

Diavik Socio-Economic Monitoring Agreement

Documents

Transcript of Diavik Socio-Economic Monitoring Agreement